Canadian companies optimistic about hiring in 2025

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Canadian companies are entering 2025 with an upbeat hiring outlook, something that could mean good things are ahead for job-seekers across the country.

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Almost three-quarters of companies here say they feel positive about hiring over the coming year, according to a recent survey by international staffing solutions firm Express Employment Professionals and Harris Poll.

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The survey of 505 hiring decision-makers found 39 per cent are feeling optimistic, 36 per cent are feeling confident and 35 are feeling hopeful. This is in line with the first half of 2024, when 70 per cent of companies felt positive about their hiring outlook, it said.

“There is a lot of optimism in the market going into 2025,” Brent Pollington, an Express franchise owner in Vancouver, said in a press release. “The positive outlook seems to stem from a combination of factors including market conditions, perceptions of continued growth, and the potential for lowering interest rates, among other things.”

The report said half of Canadian companies plan to increase their employee count in the first half of 2025, while 41 per cent plan to keep their headcount the same and only eight per cent plan to decrease their workforce.

About 60 per cent of respondents said the primary driver for increasing headcount is to manage increased volumes of work. Other reasons include filling newly created positions, addressing employee turnover, getting expertise in new areas and handling expansion into other categories or markets.

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There has also been a significant rise in the number of companies increasing their employee count to manage work related to artificial intelligence concerns, from 10 per cent in the first half of 2024 to 18 per cent now.

However, businesses are still facing persistent challenges, particularly increased hiring costs and skills shortages, Pollington said, adding that the cost per employee for businesses has drastically increased.

“Worker expectations, market factors, minimum wage hikes, increased demands for benefits and perks, retention strategies, turnover costs, and the time and resources needed to train new employees have all driven these costs higher,” he said.

Companies are also dealing with the lack of skilled workers in the market, a condition that has forced them to focus more on training and development, as well as on long-term succession planning, Pollington added. These issues require significant time and energy.

Express Employment International chief executive Bill Stoller said the positive sentiments among hiring managers are a sign of a resilient workforce.

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“The outlook for 2025 is promising, driven by a workforce ready to innovate and adapt,” he said in the press release.

The survey was conducted online within Canada by The Harris Poll on behalf of Express Employment Professionals between Nov. 11 and 16.

• Email: dpaglinawan@postmedia.com

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